Beijing, (APP – UrduPoint / Pakistan Point News – 12th Oct, 2024) China said Saturday it will issue special bonds to help its sputtering economy and that it had $325 billion in funds raised that it can deploy in the next three months to shore up the property market, ease local debt and bolster banks.
The measures, announced at a highly anticipated press conference by Finance Minister Lan Fo’an and other officials, came on top of a series of steps announced over the last weeks that have included interest rate cuts and liquidity for banks.
China’s economy has been blighted by a years-long property sector crisis and chronically low consumption. Officials are hoping to reverse the slowdown and achieve a growth target of five percent this year — enviable for many Western countries but a far cry from the double-digit expansion that for years boosted China.
On Saturday, Minister Lan said Beijing was “accelerating the use of additional treasury bonds, and ultra-long-term special treasury bonds are also being issued for use”.
“In the next three months, a total of 2.3 trillion Yuan of special bond funds can be arranged for use in various places,” he added.
Beijing also plans to “issue special government bonds to support large state-owned commercial banks,” Lan said, although he did not say how much.
The debt ceiling of local governments will also be increased so they can spend more on infrastructure and help protect jobs.
The move would “help ease liquidity and debt pressures on local governments and real estate companies,” Vice Finance Minister Liao Min said.
